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Find a Home Equity Loan at LendingTree.com
There are no perfect investment avenues and real estate investment is
no exception. For each advantage there is for tying your money up in investment property, there is at least one
disadvantage. It is important that you go into any venture with your eyes wide open and with your vision not clouded
by those who would make you believe that it is the easy way to riches. It may be a great way of increasing your
net worth, but it is not necessarily quick and rarely is it easy!
Take a minute to review some of the advantages--and the disadvantages--of investing in single family real estate.
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Advantages
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Disadvantages
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- When buying single family real estate, you can do one unit at a time.
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- Generally requires more "hands on" involvement than other
investment options.
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- Easier to sell than large multi-family dwellings or commercial real
estate.
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- Maintenance and repairs take time, money or both. (And always seem to
take more of both than planned!)
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- Real Estate investment can be good business experience for those who
are not necessarily business oriented.
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- If you are planning on a long term investment, finding good tenants, keeping them and getting the rent paid can be difficult.
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- Can be an excellent long term tax break.
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- You have increased exposure, both legal and financial.
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- Your cash is tied up in "bricks and mortar" and is not immediately
accessible.
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